The Cardano Foundation announced on October 7, 2026, at TOKEN2049 that CIP-0113, a new token standard that embeds compliance controls directly into Cardano's native assets, is now live on mainnet.

The standard gives token issuers a framework for building regulatory rules into their tokens, including the ability to freeze holdings, seize them outright, and restrict who may receive transfers.

What CIP-0113 Does

Issuers adopting CIP-0113 can attach rules to their tokens covering KYC and AML checks, sanctions screening, and transfer restrictions. A defining feature is where those rules are enforced: rather than relying on an off-chain server or a company dashboard, the Cardano ledger itself validates them each time a token is minted, burned, or transferred. The distinction is central to the design—the compliance check happens as part of each mint, burn, and transfer at the protocol level, not only where an issuer's own systems are watching.

The rollout does not require a hard fork. Tokens issued under the standard remain native Cardano assets operating under the chain's eUTXO model, and the Foundation says execution costs remain predictable.

A Modular Architecture

CIP-0113 is not a single rigid rulebook. It pairs a core standard with pluggable substandards that handle token-specific logic, and issuers can author custom modules or adapt existing ones as their requirements evolve.

Tooling support is already in place: the wallets Eternl and GeroWallet, along with the block explorer CardanoScan, now support CIP-0113 functionality.

The standard has also drawn regulatory recognition. The Swiss Capital Markets and Technology Association (CMTA) has recognized CIP-0113-compliant tokens as comparable to its CMTAT framework, which is used to certify equity securities on-chain in Switzerland. The comparison is meaningful because securities issued on-chain are precisely the type of regulated product for which issuer controls such as freezing and transfer restrictions are typically a necessity, not an option.

The Road to Mainnet

Community development and audits of the standard began in 2023, giving CIP-0113 roughly three years of development and review before reaching production. The proposal was formally merged into the official Cardano Improvement Proposals repository on September 29, 2026, and barely a week later, the Foundation announced it live on mainnet during TOKEN2049.

CIP-0113 is aimed primarily at regulated assets such as stablecoins and tokenized funds—products for which issuers typically need the legal ability to block sanctioned addresses or claw back funds. Which issuers in those categories adopt the standard, and in what numbers, will be one visible measure of its footprint on Cardano.

The Shared-Output Wrinkle

Cardano's eUTXO model works something like cash stuffed into envelopes, where a single output can hold several different tokens plus ADA. That creates a potential complication: if an issuer restricts one asset sitting in a shared output, other tokens or ADA in the same envelope could get caught up in the restriction.

CIP-0113 addresses this through a mechanism it calls an “unfracking” process. Even so, the issue introduces potential challenges for wallets and DeFi protocols, which will need to handle restricted assets carefully when bundling tokens together. How the unfracking process holds up in live conditions—and how wallet and DeFi developers build around bundled restricted assets—will be among the first practical tests now that the standard is running on mainnet.

The Trade-Off for Holders

The implications for users are real and should not be glossed over. Tokens issued under CIP-0113 can be frozen or seized by their issuers, which means holders are trusting the issuer as much as the code.

Importantly, these controls apply only to tokens whose issuers opt into the standard. ADA itself is not being turned into a freezable asset. Still, the shared-output issue illustrates why wallets and protocols will need to tread carefully when mixing restricted and unrestricted assets.